Intraday Market Thoughts

EUR Awaits Greece Above Key MAs

by Patrik Urban
Nov 26, 2012 12:59

BOJ minutes; EZ finance ministers meeting continues; Catalan separatists parties won; German GfK fell; Italian consumer confidence at all time lows. Markets discounting favourable decision on Greece tonight. EUR/USD regained the important 200-DMA and 55-DMAs in matter of 3 days. 6 trades from the Premium Insights hit all targets, 2 were stopped out. See more details below.

USD attempted to push higher at the beginning of the London session but it gave up all gains and currently trades slightly lower against all majors. European equities are losing around 0.5%.

The BOJ meeting minutes did not provide any surprise as they contained only the usual notes of continued powerful easing in light of a weak outlook. Despite the governor Shirakawa comments that the currency market can be influenced by easing until the inflation target is in sight, USDJPY declined from 82.50s to 81.92 and currently trades around 82.10.

Eurozone finance ministers are meeting in Brussels for the third time this month on Greek debt clearance. The goal is to agree on debt reduction and debt sustainability before the next tranche of the aid is delivered. Markets discounting favourable decision on Greece tonight.

Catalan separatist parties won regional elections but voters gave no clear message for their leaders as the Catalan president Artur Mas who called the election actually lost a number of seats in the regional parliament. As a consequence he will have to form an alliance with parties that have a different socioeconomic agenda.

The European data calendar was light, Eurozone GfK German consumer climate fell for December to 5.9 from previous 6.3 and Italian consumer confidence fell to all time low 84.8 in November from 86.2 in October. EURUSD trades not far from session highs around 1.2965.

There are no data reports due during the US session today. The only risk event is a speech given by the vice president of the ECB Vitor Constancio that is scheduled to begin at 9:00 am ET.

6 trades from the Premium Insights hit all targets, 2 were stopped out, 4 remain in progress and 3 were unfilled. 1 EURUSD short stopped out, while the long was unfilled. USDJPY in progress. Both GBPUSD hit all targets (two weeks in a row both cable longs hit their targets). AUDUSD long was unfilled (missed by 20 pips). 1 EURJPY long hit all targets, the other was unfilled. CADJPY long remains in progress, while both EURGBP finally hit all targets, which were in progress since Nov 14. One gold short stopped out, the other a new contingency long was filled and in progress. The long silver trade since Nov 7 finally hit its highest target of 33.90. The lone long in oil is in progress. For DIRECT ACCESS to these trades and the relevant charts, click here: NonSubscribers Can click here to join:


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